N.L. abuse victims to receive 2nd payout after court approves $14.4M in compensation
Payout follows initial distribution of $22M in late 2024 to Mount Cashel survivors
Hundreds of abuse victims linked to a long-running insolvency case involving a Catholic archdiocese in Newfoundland and Labrador will soon be receiving more cash after a court approved the disbursement of more than $14 million raised through the sale of churches and other assets.
Cheques are expected to be distributed sometime in July to nearly 360 claimants who endured abuse at the hands of Christian Brothers at the notorious Mount Cashel orphanage in St. John's, and members of the clergy and other religious orders.
According to court documents, claimants will receive anywhere from $8,000 to $126,000 in this latest payout, minus legal fees of up to 40 per cent.
Late last year, the court approved an initial disbursement of more than $22 million.
When this latest payout is complete, victims will have received roughly 30 per cent of their total award, which averages about $400,000. Claimants who received compensation from previous settlements have had those amounts deducted.
The Roman Catholic Episcopal Corporation of St. John's, the business arm of the St. John's archdiocese, has been found vicariously liable for the abuse.
The corporation has been under court protection from its creditors since late 2021 while it liquidates assets all over the Avalon and Burin peninsulas in a bid to pay claims totalling more than $121 million.
According to the latest report from the firm overseeing the insolvency, 116 properties were sold as of April 30, with proceeds of $31.4 million. The corporation has also received millions from the provincial government for the sale of school properties, and the proceeds of a Chase the Ace fundraiser in the Goulds, bringing the total pool of funding available for creditors and victims to roughly $50 million.
That's less than half of the total settlement amount, but lawyers for the victims are involved in "confidential discussions concerning further potential recoveries," according to court documents.
Meanwhile, the stay of proceedings against the episcopal corporation has been extended to Sept. 30, allowing more time for the sale of properties.
With this latest payout to claimants, roughly $4 million is being held in reserve by the episcopal corporation to cover ongoing costs related to the insolvency.
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